BIRMINGHAM, Alabama -- Only one local firm was selected to help Jefferson County issue nearly $1.9 billion in refinanced sewer warrants and two of the firms chosen were fined by the Securities and Exchange Commission for wrongdoing, according to a review of documents.

The County Commission voted 3-1 on Thursday to select nine firms to help Citigroup Global Markets, the senior manager, sell the warrants as part of a proposed plan of adjustment needed for the county to exit bankruptcy by the end of the year.

Merchant Capital has also worked for the county as a co-manager on previous sewer deals, according to Citigroup.

The planned refinancing for later this year is contingent upon an agreement before Nov. 4 between the county and creditors on additional concessions to make the county's deal to exit bankruptcy feasible.

Commissioner Sandra Little Brown, who voted no, said she was opposed to the resolution to hire the group of broker-dealers, known as an underwriting syndicate, because only one of the 10 firms was based in the county.

"I am very disappointed," Brown said. "The commission is perfectly comfortable with raising sewer rates on residents and then sending all of the proceeds from this bond deal outside of Jefferson County. Those companies don't pay sewer bills or taxes in Jefferson County. It's totally unfair."

Brown said a number of firms - both white and black - in the county could do the same work as the ones chosen.

Commission President David Carrington and Commissioners Joe Knight and Jimmie Stephens voted to hire the syndicate.

Carrington said Citigroup hired the syndicate and it was the bank's goal "to select the group they felt was the most qualified to produce a successful sale."

Stephens said the commission was told by Citi that the firms recommended "offered the best opportunity for a successful completion of the transaction."

Merchant Capital LLC paid $55,000 in fines to the Securities and Exchange Commission after charges that it took Alabama two-year-college officials, their friends and family members, on lavish trips to New York for meetings with insurers and rating agencies. They went to restaurants like Smith & Wollensksy, and to Broadway shows such as Hairspray. They spent $26,000 wining and dining, and they turned around and paid themselves back with bond proceeds, according to published reports.

Citi declined to comment. Efforts to reach Merchant Capital for comment were unsuccessful.

Citi officials have said Merchant has the largest public finance office in Alabama and Georgia and is consistently ranked as a top five underwriter in the Southeast. They also have pointed out the problems Merchant faced were in 2005 and the matter was discussed openly with the county commission.

RBC Capital Markets Corp. agreed to pay $125,000 in fines in 2009 for their part in facilitating 2004 and 2005 expenses incurred by government employees after Texas officials and their families traveled to New York, dropping money at Le Cirque, Tavern on the Green, Broadway shows and expensive hotels. The employees later reimbursed the government entity for the expenses incurred.